As our year heads to a close, here is a quick look at where we are and where we seem to be headed for 2022. 2021 saw one of the strongest seller real estate markets ever. What began in the tail end of the 3rd quarter of 2020, went hyperbolic in the first half of 2021. Multiple offers and contracts 10-20% over list price lead to price appreciation in the 28-30% range for the year. In fact, our real estate market has been in a seller’s market for so long (since 2015) that an unbalanced market has become our new normal.
To put that in perspective, here are some numbers from Tina Tamboer of the Cromford Report: “Over the past 21 years, Greater Phoenix has been in a buyer market for a combined total of 43 months (3.6 years), a balanced market for 55 months (4.6 years) and a seller market for 155 months (12.9 years). This is important to discuss because the longer seller markets last, the more human beings change their definition of what “normal” looks and feels like. “Normal” for Greater Phoenix is not a balanced market, it’s a seller market.
So when national analysts suggest the housing market will cool off in 2022, many (if not most) local housing analysts believe it will remain a seller market, but a weaker one. Prices don’t decline in seller markets, but listings may stay active for a few more days before accepting a contract. A full price offer may be enough to win a home. Buyers may have less pressure to waive appraisal and repairs.
However, after the last 18 months of extreme seller market conditions, anything less than sheer lunacy could feel like the sky is falling.”
For specific information about your neighborhood, reach out to us. We are always here to help. We wish you all a joyous holiday season and a very happy 2022.
Russell & Wendy